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Dalian, SGX iron ore on track for weekly gains
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Despite gains, iron ore stuck in $120-130/T range
(Updates prices, milestones)
By Enrico Dela Cruz
Feb 17 (Reuters) - Dalian iron ore reached a contract
high on Friday, while the Singapore benchmark price of the
steelmaking ingredient hit a two-week peak, as hopes grew that
top buyer China would roll out more measures to support its
economy.
The most-traded May iron ore on China's Dalian Commodity
Exchange ended daytime trade 2% higher at 889.50 yuan
($129.29) a tonne, just below a contract high of 893 yuan,
keeping it on track for a weekly gain of around 3%.
On the Singapore Exchange, benchmark March iron ore rose as
much as 1.7 to $126.70 a tonne, its highest since Feb. 1.
Hopes are high that Beijing will announce more economic
stimulus measures at next month's annual National People's
Congress session, analysts said.
Helping lift prices, China's new home prices rose in January
for the first time in a year, data showed on Thursday, as the
end of the country's zero-COVID regime, favourable property
policies and market expectations for more stimulus measures
boosted demand.
Adding to the upbeat mood, China's leaders have declared a
"decisive victory" over COVID-19.
Rebar on the Shanghai Futures Exchange rose 1.4%,
hot-rolled coil gained 1%, wire rod added
0.2%, and stainless steel climbed 0.4%.
Other Dalian steelmaking inputs also advanced, with
coking coal and coke climbing 2.6% and 3.2%,
respectively.
Iron ore has risen to $120-$130 a tonne from a November
low below $90, buoyed by China's reopening and supportive
measures for property developers. The rally, however, has
stalled in that range amid a guarded outlook for the struggling
real estate sector.
"Whilst the slight uptick (in new home prices)
represents a major turning point, a rapid improvement is
unexpected given the market remains flush with property from
decades of overbuilding and investment demand is set to stay
subdued," SP Angel analysts said in a note.
(Reporting by Enrico Dela Cruz in Manila; Editing by Subhranshu
Sahu and Sherry Jacob-Phillips)
